Oil output dips to multi-decade low

Monday, 18 Aug 2025

Oil output dips to multi-decade low

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Today at a glance

Energy

Oil output drops to four-decade low in 2Q 2025.

Banking

The country’s first digital bank to launch services next year.

Real estate

Foreign North Coast developers hit with USD fees.

Capital markets

A look at what’s in the pipeline for the Egyptian Climate Exchange.

Moves

United Bank to welcome new CEO following El Kady’s resignation.

ALSO ON OUR RADAR

SFE completes valuation of Downtown real estate assets.

PLANET FINANCE

Is the greenback on its way to lose its title as king?

BLACKBOARD

Will a new pay system for teachers bring talent back to the classroom?

WHAT WE’RE TRACKING TODAY

Egypt ups its external debt service payment plan for 2026

Good morning, friends. We have a brisk issue for you this Monday morning led by the latest on our oil output, which hit a four-decade low last quarter with production falling to 513k bbl/d. We also have updates on the country’s first digital bank — it plans to launch services to the public next year after receiving the final green light from the CBE in a move that would accelerate our transition toward a digital economy.

AND- The earnings season is in full swing, with more companies reporting their quarterly results.

There are just 50 days left until the 2025 EnterpriseAM Egypt Forum, our flagship forum and part of our must-attend series of invitation-only, C-suite-level gatherings. Tap to register your interest to attend. Want to partner with us? Reach out to Moustafa Taalab at mtaalab@enterprisemea.com to discuss how you can sponsor.

PSA-

WEATHER- Cairo is in for another sunny day today, with a high of 35°C and a low of 26°C, according to our favorite weather app.

It’s more or less the same in Alexandria, which is looking at a high of 34°C and a low of 23°C.

WATCH THIS SPACE-

Credit default swaps (CDS) for Egypt’s five-year debt have fallen to their lowest level in almost four years, reaching 438 basis points, according to data seen by EnterpriseAM. Historically, the cost of insuring our sovereign debt has ranged between 257 and 325 basis points. However, it began to jump significantly, first in 2016 and then again in 2022 due to global geopolitical tensions.

“We are now just 1.3% shy of the the historical average of around 300 basis points, despite a number of challenges — including the closure of the Bab El Mandab strait, weak natural gas production, and a delayed fifth review [form the IMF],” Ahly Pharos Head of Research Hany Genena wrote on Facebook.

EGX WATCH-

Capital Med’s EGX debut is almost here: Badr City’s medical city Capital Med is planning to list a stake on the EGX before the end of 3Q 2025 raising as much as EGP 2 bn, sources told Al Borsa. Proceeds from the listing will help finance the second phase of the medical complex, which is estimated to cost some EGP 3-5 bn. Al Ahly Pharos will manage and promote the offering.

We knew this was coming: Capital Med said in February that it will make its EGX debut through a direct listing in 1H 2025, then move forward with a capital increase to fund the construction of the new phase of the medical city.

DATA POINT-

The Central Bank of Egypt (CBE) revised upward its projected external debt service payment plan for 2026 to USD 27.87 bn, marking an increase of around USD 1.9 bn from its previous estimate of 25.97 bn, according to CBE data seen by EnterpriseAM. Loan installments for the year were also revised up to around USD 22.72 bn, compared to 21.1 bn in a previous estimate. Meanwhile, total interest payments for the year now stand at USD 5.15 bn, up from a previous projection of USD 4.87 bn.

REMEMBER- The Finance Ministry's plans to issue up to USD 4 bn in international bonds over the next 12 months to help address its USD 11 bn external financing gap. The planned issuances could include EUR- and USD-denominated securities, sustainability bonds, sukuk, and CNY- or JPY-denominated instruments.

** DID YOU KNOW that we cover Saudi Arabia and the UAE?

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ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the Electricity Ministry’s Industrial Energy Efficiency and Conservation Framework launched earlier this month to help factories reduce electricity consumption and operational costs. You can check out the story here.

THE BIG STORY ABROAD-

There’s no single story leading the conversation in the international business press this morning, but the global business community pushing ahead with “return to office” orders can be seen in a handful of stories on JPMorgan Chase preparing to move into headquarters in New York and London. The bank is “stepping up planning” for a new tower in London as it begins to outgrow its current headquarters as it expands in the UK, while across the pond in Manhattan its new USD 3 bn Midtown tower is expected to be ready for move-in in October. The Wall Street Journal and the Financial Times have more.

ALSO- Air Canada delayed restarting its operations, after striking flight attendants refused to obey a government order on a labor dispute between the flight attendants and the airline. The flight attendants — who went on strike over the weekend over pay issues — and the Canadian Union of Public Employees are pushing the airline to “negotiate a fair [agreement]” to settle the dispute. The airline intends to resume flying this evening. (Wall Street Journal | Reuters)

Meanwhile, the disjointed conversations over ending the Russia-Ukraine war are still getting plenty of ink across digital front pages, as Ukrainian President Volodymyr Zelensky is due to meet with Donald Trump in Washington later today. Zelensky — who insists his country will not cede more territory to Russia — will be accompanied by the NATO secretary general and several other European leaders. (Politico | BBC | Financial Times | Reuters)

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at a new package of financial incentives for public school teachers to attract talent to the state education system and raise the quality of education.

Tags:

Central Bank of Egypt debt WHAT WE’RE TRACKING TODAY

Whether you’re diving into turquoise waters, catching golden hour from your terrace, or just letting time drift by — Somabay is summer, redefined. Your ultimate escape, every single time.

Energy

Egypt’s oil output drops to four-decade low in 2Q 2025

Oil production in Egypt saw its lowest output since the early 1980s, dropping to 513k bbl/d in 2Q 2025, industry publication Middle East Economic Survey (Mees) said in a report, citing Oil Ministry data. The decline is cutting into a key source of state revenue and forcing the country to lean more heavily on oil imports to cover domestic consumption. The drop comes alongside a slump in gas output, which fell to a nine-year low of 4.2 bcf/d in 2Q.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Good news, bad news: US oil producer Apache’s output fell 3% q-o-q to a 17-year low of 124k bbl/d in 2Q, with the company saying production will remain flat for the rest of the year. Meanwhile, Vaalco recorded a 7% q-o-q increase in output to 10.9k bbl/d. The firm drilled six wells during the quarter and will begin extraction on three this quarter, Mees added. Despite the uptick, Vaalco’s full-year guidance remains wide at 9.8k-11k bbl/d.

The decline in oil output dragged condensate volumes down, with Mediterranean condensate output dropping 4% q-o-q to about 30k bbl/d.

Egypt’s refining sector is also struggling. Throughputs averaged 490k bbl/d over the first five months of the year, covering just 56% of the country’s 875k bbl/d crude distillation unit capacity. Refinery output of 493k bbl/d met only 64% of domestic demand, with gasoline and diesel production falling well short of covering consumption.

Fuel oil demand surged, with burn rising 36% y-o-y to 101k bbl/d during the first five months of the year. Net fuel oil imports more than doubled, rising 156% to 55k bbl/d, Mees added, citing recent Jodi data. Imports are expected to ease in the coming months as Egypt leverages its four floating storage and regasification units to ramp up LNG imports, with the Egyptian General Petroleum Corporation cancelling seven mazut shipments amounting to some 2.2 mn barrels this month.

REMEMBER- Disruptions in regional natural gas supplies, notably the halt of pipeline deliveries from Israel, have forced us to rely more heavily on fuel oil and diesel to meet electricity needs during peak summer demand.

Speaking of Israeli gas: Egypt imported 890 mcf/d of gas from Israel in July, a three-month high and a 59% m-o-m increase, according to Mees data. While flows have yet to return to the 1 bcf/d levels seen previously, July’s intake matches the levels seen during the same month last year.

Tags:

energy oil and gas

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Banking

Egypt’s first digital bank to launch services next year

Egypt’s first digital bank to see the light soon: Banque Misr’s Misr Digital Innovation (MDI) has received approval from the Central Bank of Egypt to transform into onebank, the country's first fully digital-native bank, according to a statement (pdf). The move is expected to accelerate our transition toward a digital economy.

The timeline: onebank is set to launch its services to the public in 2026 after receiving the final green light from the CBE, according to the statement.

REMEMBER- MDI received preliminary approval from the CBE to launch onebank in May 2024. At the time MDI had planned to launch the bank in 4Q 2024 after finalizing the second phase of due diligence and acquiring the operating license. MDI had invested EGP 2.5 bn in onebank as of May of last year and had plans to beef up the bank’s paid-up capital to EGP 5.5 bn by mid-2025.

A turning point: “This pivotal transition marks a turning point in the evolution of Egypt’s banking sector, cementing onebank’s position as a pioneer in the field and a key pillar in building the country’s digital economy,” according to the statement.

Leading our first digital bank: Sherif El Behery (LinkedIn) will stay on as CEO. El Behery is a global financial services expert with over 25 years of experience at major banks like Citibank and Barclays. The bank’s board of directors will be led by Khaled El Attar (LinkedIn), who has been tapped as non-executive chairman. El Attar brings over 35 years of experience to the role, having previously held senior roles at IBM, Raya Holding, and served as Vice Minister for Digital Transformation at the CIT Ministry.

The board, too, includes a number of distinguished leaders and experts across various fields:

Anwar Zeidan (LinkedIn) is on the board as a non-executive board member representing Banque Misr. He is a founding partner at Zulficar & Partners Law Firm, specializing in capital markets and banking law.
Amal Enan (LinkedIn) is a non-executive independent board member. She is the CIO of AUC’s Endowment and a Partner at 500 Global, with a background in finance and investment.
Ayman Ismail (LinkedIn) is a non-executive independent board member. He is an expert in entrepreneurship and economic development who founded AUC Venture Lab.
Nada Elshazly (LinkedIn) is a non-executive independent board member. She is a fintech professor and consultant in economics and financial transformation who has advised global institutions.

What they said: “We are not simply introducing a new digital bank; we are redefining the future of banking in Egypt. Our newly appointed board of directors brings a wealth of expertise and strategic vision, empowering us to deliver innovative solutions that cater to the evolving needs of Egyptian consumers. Together, we are committed to placing onebank at the forefront of the financial services sector, setting new standards for excellence and accessibility across the region," said El Behery.

The first of many: Local firms Aman, MNT-Halan, Sahl, Basata Financial Holding, Ostoul Securities Brokerage, and PaySky have expressed interest in applying for a digital banking license. Meanwhile, China-backed fintech company OPay also announced last year that it wants to apply for the license.

Tags:

banking Banque Misr Central Bank of Egypt

Real estate

Foreign North Coast developers hit with USD fees

USD fees for foreign developers headline NUCA’s new North Coast rulebook: Foreign developers with projects in the North Coast will face a flat USD 20 per sqm fee to be paid in full, Asharq Business reports, citing a document from the New Urban Communities Authority (NUCA). The document — which outlines a new regulatory framework for real estate projects in the North Coast — notes that proceeds from the levy will go directly to the Tahya Misr Fund.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Locals will pay a unified EGP 1k per sqm fee: Local developers will now be charged a standardized EGP 1k per sqm fee on land used for tourism developments under the new framework, replacing the previously tiered structure. They’ll pay 20% upfront, with the rest paid over five years at the central bank’s lending rate.

The new fee structure replaces a tiered regime introduced just weeks ago, which had developers paying up to EGP 1k/sqm on land near the coast or along the Dabaa Axis. The move sparked pushback from developers, with industry insiders warning of investor uncertainty and retroactive application.

Will Ras El Hekma land get even pricier? NUCA has temporarily halted all new land sales in the western portion of the North Coast — specifically west of Ras El Hekma — pending a review of pricing mechanisms in light of road upgrades in the area, according to the document.

Fifty developers face penalties: The new rules also suspend contracts with 50 real estate firms after they transferred part or all of their North Coast land plots to other entities without obtaining the necessary approvals. Penalties include cutting electricity and water services to their projects until overdue fees are paid.

Lagging construction could cost developers their land: The framework also introduces stricter enforcement on project timelines. Developers who fail to deliver agreed-upon hotel developments or who don’t complete at least 35% of construction within the designated period risk having their plot taken away or being fined.

Tags:

New Urban Communities Authority north coast Ras El Hekma real estate

Capital markets

What’s in the pipeline for the Egyptian Climate Exchange?

The Madbouly government is gearing up to issue carbon credits for renewable energy projects exceeding 10 MW, a government source told EnterpriseAM. The projects will be listed on the Egyptian Climate Exchange (EGCX) once they go online, later this year or early 2026.

The current challenge is pricing, as Egypt has so far relied on international benchmarks when it comes to pricing carbon credits, but the introduction of an organized mechanism will allow for a fair pricing system for these certificates, the source said.

Several entities are overseeing the drafting of this mechanism, including the electricity and environment ministries, alongside the EGX and the Financial Regulatory Authority.

Reducing the cost of electricity production: The government hopes that efforts to expand the country’s renewable capacity and the new carbon pricing mechanism will help slash Egypt’s monthly EGP 25 bn electricity production bill, the source said. Revenues from carbon certificate sales will be used to reduce costs and finance more renewables projects.

Big plans ahead: The state aims to raise renewables’ share in the energy mix to 20% in FY 2025-26 — up from 12% the year before — and eventually to 42% of the country’s total energy mix by 2030. Some 12.7 GW — 3.8 GW of solar and 8.9 GW of wind — are already in development, a government source told us. More than 97k feddans of land have been earmarked for projects in the Red Sea governorate.

The government will be stepping back from direct investment in renewables projects, allowing private companies to develop them under partnership models. The private sector is currently developing some 4.6 GW, according to government data seen by EnterpriseAM.

REMEMBER- The EGCX launched in August of last year, becoming Africa’s first carbon market. It allows companies to issue, sell, and buy voluntary carbon certificates in Egypt and Africa to offset emissions. The voluntary carbon trading market was branded as the Egyptian Climate Exchange back in May.

Tags:

capital markets carbon trading

EARNINGS WATCH

Raya Holding, Egypt Kuwait Holding are out with their 2Q earnings

More earnings come in: Raya Holding and Egypt Kuwait Holding are both out with their 2Q earnings.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

RAYA HOLDING’S INCOME, REVENUES UP IN 2Q-

Raya Holding saw its net income before minority interest climb 52.1% y-o-y to EGP 584 mn in 2Q 2025, with revenue rising 54.0% y-o-y to reach EGP 14.9 bn in the same period, according to the company’s latest earnin gs release (pdf ). The company attributed the growth to an improved product mix, portfolio expansion, and contributions from export-oriented revenues.

On a 1H basis, the group's net income before minority interest rose to EGP 972 mn, up 27.5% y-o-y, while its revenue rose 38.3% y-o-y to EGP 27.8 bn. The growth was driven by “the continued momentum of the group’s four largest contributors,” the company said.

The breakdown: Raya Trade and Distribution was the largest contributor to group revenues in 1H 2025, accounting for 35.0% of the total. The subsidiary brought EGP 9.7 bn in revenue, up 18.5% y-o-y, supported by mobile distribution, retail, and its Nigerian operations. Raya IT came second with 29.1% of revenues, raking in EGP 8.1 bn, up 74.6% y-o-y, on the back of strong regional demand and higher-margin managed services. The group’s NBFS arm Aman was the third-largest contributor, bringing in 14.0% of revenues with EGP 3.9 bn, up 51.3% y-o-y.

EKH’S NET INCOME MORE THAN DOUBLES IN 2Q 2025-

Egypt Kuwait Holding (EKH) saw its attributable net income increase 105% y-o-y to USD 56.3 mn in 2Q 2025, according to its latest earnings release (pdf). The company’s top line was up 75% y-o-y at USD 215.0 mn, supported by strong operational performance across its portfolio and gains from its ongoing portfolio optimization efforts.

On a 1H basis, EKH posted USD 397 mn in revenues, up 32% y-o-y, supported by solid proceeds across the company's portfolio. The company's attributable net income inched up 0.3% to USD 90.4 mn on the back of a one-off FX gain of nearly USD 50 mn booked in 1H 2024, the release showed. Excluding that FX windfall, EKH’s bottom line would have more than doubled y-o-y in 1H 2025.

The breakdown: Fertilizer arm AlexFert contributed the lion’s share of total revenues with a 30% share in the first six months of the year. The subsidiary’s revenue increased 11% y-o-y to USD 118 mn in 1H 2025 on the back of stronger export urea prices. Petrochemical subsidiary Sprea Misr recorded USD 89.6 mn in revenue, rising 21% y-o-y and contributing 23% of total revenues, driven by higher sales volumes and export growth. NatEnergy saw its revenue increase 15% y-o-y to USD 33.6 mn, Kahraba’s revenues rose 10% to USD 27.9 mn, and ONS clocked in a 9% y-o-y increase to USD 31.2 mn.

A rebrand is upon us? “We remain on track with our corporate identity transformation, with the board having resolved to call for a General Assembly meeting to vote on changing the company’s name to “Valmore Holding.” This new identity builds on the success we have achieved as Egypt Kuwait Holding, while aligning our positioning with our future growth plans and international expansion strategy. It reflects our ambition to transform EKH from a leading regional investment platform into a world-class global investment company,” Chairman Loay Al Kharafi said.

Tags:

earnings earnings watch Egypt Kuwait Holding Raya Holding

Moves

United Bank to welcome new CEO following El Kady’s resignation

The Central Bank of Egypt has reportedly appointed Tarek Fayed (LinkedIn) as CEO of United Bank, Al Mal reports citing sources with knowledge of the matter. Fayed will take over from Ashraf El Kady (LinkedIn) following his resignation after nearly a decade leading the bank. Fayed previously served as the CEO of Banque du Caire, prior to that he held positions at the Central Bank of Egypt and Citibank. He will begin his tenure at the bank next month.

Tags:

Central Bank of Egypt moves United Bank

ALSO ON OUR RADAR

What’s the value of Downtown Cairo real estate assets?

REAL ESTATE-

The Sovereign Fund of Egypt completed its financial valuation of Downtown Cairo real estate assets, including the buildings of ministries and government entities, Al Borsa reports, citing unnamed senior government sources. It also covers the assets of ins. companies in Cairo and other governorates that are owned by Misr Real Estate Assets Management, a subsidiary of Misr Ins. Holding. The move comes ahead of the government’s plan to offer the Ministries Square area and Downtown assets to investors.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The valuation priced residential units at EGP 20-28k per sqm and administrative units at around 30% higher, the sources said. Meanwhile, commercial properties ranged between EGP 80-120k per sqm, excluding land value. The source highlighted that market values vary depending on location and use, with the area’s “character and investment potential” being key factors in setting value. The government seeks to maximize returns from vacated units in Downtown Cairo, all while preserving historical aspects of the buildings, the source said.

AUTOMOTIVE-

Kia distributor mulls local assembly in 2026: Egyptian International Trading and Agencies (EIT), the local distributor of Kia and a subsidiary of Egyptian International Motors, is looking into the local assembly of two Kia models — an SUV and a sedan — in the second half of 2026, COO Ahmed El Khadem told Al Borsa. The company is still assessing production timelines and capacity. EIT is also planning to launch five new electric Kia models and one new gasoline model before year-end.

LOGISTICS-

The Transport Ministry has scrapped the tender for the Shaq El Tebaan dry port and logistics center, after none of the three bidders met technical requirements, sources told Al Borsa. The General Authority for Land and Dry Ports will instead relaunch the project through a closed-envelope auction, with technical bids due next January and financial offers the month after. The authority has also lowered the initial deposit to EGP 10 mn from USD 1 mn to ease participation.

REMEMBER- The authority launched the tender last year for companies to manage and operate the port located in the largest marble and granite industrial cluster in the country. The port will be used as the base for marble exports and is expected to bring in some USD 100 mn in investments.

INFRASTRUCTURE-

Egypt and Jordan began establishing the 15 km high-capacity Coral Bridge subsea cable linking Sinai’s Taba to the Jordanian coastal city of Aqaba, according to a statemen t from the CIT Ministry. The cable — which Telecom Egypt and Jordanian telecom service provider NaiTel inked an agreement for in January 2024 — was launched in Taba and will reach Aqaba in the coming days.

Tags:

ALSO ON OUR RADAR automotive EVs infrastructure logistics real estate Sovereign Fund of Egypt state privatization program Transport Ministry

PLANET FINANCE

Is the greenback on its way to lose its title as king?

The greenback’s status as the world’s go-to reserve currency is facing mounting pressure, with global investors questioning its long-held dominance amid economic and political turbulence, writes Bloomberg. While the USD still accounts for 60% of global reserves and is used in roughly 90% of all FX transactions, signs of erosion are emerging. A weaker greenback undermines the US’s ability to run persistent deficits and maintain global influence — both military and financial — and is beginning to push investors to seek safer, more diversified currency exposure, writes the business news information service.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Investor anxiety began building when the tariff-driven trade regime of President Donald Trump returned in April. The USD index has since plunged 10% — its worst first-half performance since 1973 — as sentiment toward US assets soured. This wave of uncertainty also dragged down demand for US Treasuries, raising funding costs for Washington and exposing America’s fiscal vulnerability.

The retreat from the US and the USD is translating into a growing appetite for international exposure. Global non-US equity funds logged their biggest monthly inflows in more than four years in July, drawing USD 13.6 bn, while US-focused equity funds saw USD 6.3 bn in outflows during the same period. Investors are leaning toward Europe and emerging markets where valuations are lower, monetary policy is looser, and the political environment is comparatively more stable.

Mixed messages from Washington aren’t helping, with Trump’s Fed nominee Stephen Miran openly describing the USD’s reserve status as a burden, while Treasury Secretary Scott Bessent continues to defend its global role. The Trump administration’s broader agenda — including centralizing federal authority and attacking institutional independence — is also making global investors nervous.

But despite the exodus, no single currency has yet emerged as a credible alternative to the USD. The EUR is limited by fragmented governance, the CNY remains shackled by capital controls, and gold is illiquid and yield-free. Crypto and stablecoins, while growing, are still speculative or USD-pegged. Most analysts agree we are headed toward a more multipolar currency world, with the USD still dominant, but sharing space with other currencies.

MARKETS THIS MORNING-

Asian markets are mostly in the green in early trading this morning, with Japan’s Nikkei leading gains, up 0.8%. The Shanghai Composite and Hang Seng are also in the green, up 0.5% and 0.3%, respectively, while the Kospi is looking at losses of 1.3%.

EGX30	35,973	+1.1% (YTD: +21.0%)
USD (CBE)	Buy 48.24	Sell 48.38
USD (CIB)	Buy 48.27	Sell 48.37
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	10,897	+0.6% (YTD: -9.5%)
ADX	10,222	-0.3% (YTD: +8.5%)
DFM	6,126	+0.5% (YTD: +18.8%)
S&P 500	6,450	-0.3% (YTD: +9.7%)
FTSE 100	9,139	-0.4% (YTD: +11.8%)
Euro Stoxx 50	5,449	+0.3% (YTD: +11.3%)
Brent crude	USD 65.57	-0.4%
Natural gas (Nymex)	USD 2.87	-1.6%
Gold	USD 3,369	-0.4%
BTC	USD 117,564	+0.1% (YTD: +25.7%)
S&P Egypt Sovereign Bond Index	892.64	+0.1% (YTD: +14.8%)
S&P MENA Bond & Sukuk	148.24	-0.1% (YTD: +5.9%)
VIX (Volatility Index)	15.09	+1.8% (YTD: -13.0%)

THE CLOSING BELL-

The EGX30 rose 1.1% at yesterday’s close on turnover of EGP 3.6 bn (30.6% below the 90-day average). Local investors were the sole net sellers. The index is up 21.0% YTD.

In the green: Ibnsina Pharma (+4.0%), EFG Holding (+2.6%), and Telecom Egypt (+2.4%).

In the red: Qalaa Holdings (-2.9%), Misr Cement (-1.9%), and Emaar Misr (-1.5%).

Tags:

Financial Markets foreign exchange Planet Finance

Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

Read Blackboard

BLACKBOARD

Will a new pay system for teachers bring talent back to the classroom?

A new pay system for teachers is in the works: The education and finance ministries are working on a new package of financial incentives for public school teachers, alongside tougher requirements for their private school peers, aiming to attract talent to the state education system and raise its quality.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Egypt faces a shortage of around 469k teachers, Education Minister Mohamed Abdel Latif estimates. The new system will raise teacher pay fairly across the board, a government source told EnterpriseAM, adding that the executive regulations to last month’s new Education Act are currently being drafted.

What will the new system entail? The framework will hike teachers' wages and introduce performance-based incentives tied to strict evaluation criteria, the source told us, stressing that it aims to close the gap between supply and demand and build a skilled workforce. The new Education Act also tasks the prime minister with designing a comprehensive incentive scheme and establishes a special performance bonus for outstanding teachers — capped at 10% of staff per district each year — subject to cabinet approval.

A stopgap raise this year: Teacher compensation has already been raised 57% in FY 2025-2026 through bonuses and allowances, pending the new system, the source said. Spending on teaching bonuses nearly doubled to EGP 5.6 bn, while the pre-university development allowance rose to EGP 4.3 bn, according to official budget data seen by EnterpriseAM. However, the performance bonus fell to EGP 10.1 bn from EGP 11.0 bn. The Finance Ministry also issued a decision raising the complementary teacher incentive by 30% to EGP 2.1k a month, up from EGP 1.5k.

Curbing private tutoring: In return for the higher pay, the state plans to crack down on private tutoring, giving the minister or the relevant governor the authority to refer teachers to investigation if found giving private lessons or committing disciplinary violations, with penalties ranging from warnings to dismissal. Teachers will also receive a 50% base-salary allowance and an accreditation bonus that varies by seniority once they meet hiring conditions.

Wages take priority over capex: The education budget for the current fiscal year stands at EGP 315 bn; EGP 214.7 bn of which is earmarked for teacher and staff pay. Public investment allocations fell to just EGP 60 bn, with the state leaning on private-sector participation to fill the gap.

Teachers see hope, but problems remain: The prospect of a comprehensive wage overhaul has been met with support among educators, Khaled Anani, head of the teachers’ syndicate in El Saff Education Administration, told EnterpriseAM. He stressed that better pay is a must for retaining teachers, many of whom have left for better offers abroad or to teach in private schools or private tutoring centers. This exodus, he said, has undermined state curriculum reform.

Major challenges remain: Teachers’ incentives are still calculated against 2014 base salaries, while penalties are deducted against current pay — and retirement pensions remain low, according to Anani. He added that exam bonuses have also been cut from around EGP 7k to EGP 4.1k under the state’s payroll system.

Private schools face new mandates: The Education Ministry has also mandated private schools to adhere to the official minimum wage for all teaching and administrative staff. The cost burden will be heavy, especially for mid-tier schools that make up the bulk of the sector, Association of Private School Owners in Egypt head Badawi Allam told EnterpriseAM. He called for phased fee increases to help schools comply, suggesting a two-year rollout. Allam said the minister has emphasized the importance of raising private school teacher pay to safeguard education quality, while investors are asking for incentives to support demand in the sector.

Your top education stories for the week:

Six local universities ranked among the world’s top 1k in Shanghai’s 2025 ARWU index, led by Cairo University in the 401-500 bracket. Alexandria University, Ain Shams University, Mansoura University, Al Azhar University, and Zagazig University also made the cut. (Statement)
The Education Development Fund launched Egypt’s first diploma program to train teachers on Japan’s educational model Tokkatsu. Starting next academic year, the joint program with local universities and Japan’s Fukui University will offer dual certification and hands-on training in Egyptian-Japanese schools. (Statement)
Cairo and Sohag universities will both launch a bachelor’s in banking sciences starting in the academic year 2025-26, under partnership agreements with the Central Bank’s Egyptian Banking Institute. The program is the first of its kind in Egypt and is designed to build a pipeline of banking talent nationwide. (Statement)

Tags:

Blackboard Education

CALENDAR

AUGUST

28 August (Thursday): Monetary Policy Committee meeting.

Mid-August: Launch of electronic platform to register Old Rent Law tenants.

Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

Late-August: Deadline for cement factories to restart production.

SEPTEMBER

8-11 September (Monday-Thursday): EFG Hermes London Conference takes place in the British capital.

9-11 September (Tuesday-Thursday): The International Exhibition for Paper, Corrugated Board, Paperboard and Tissue Paper Industries — PAPER-ME — takes place at the Egypt International Exhibition Center.

15 September (Monday): IMF to hold its combined fifth and sixth reviews of Egypt’s USD 8 bn EFF arrangement.

24-27 September (Wednesday-Saturday): Cityscape Egypt 2025, Egypt International Exhibition Center.

The Egyptian-Moroccan Business Council to send a delegation of 23 local companies to Rabat.

The Engineering Export Council of Egypt will ship a commercial delegation to Russia to ramp up exports to European markets.

Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay.

Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026.

OCTOBER

1 October (Wednesday): Applications for alternative housing for old rent tenants will open through an online platform or at post offices nationwide.

2 October (Thursday): Monetary Policy Committee’s sixth meeting.

7 October (Tuesday): The 2025 EnterpriseAM Egypt Forum.

7-8 October (Tuesday-Wednesday): HACE-Hotel Expo, Egypt International Exhibitions Center.

7-9 October (Tuesday-Thursday): EgyMedica Exhibition, Cairo International Convention Center.

12-16 October (Sunday-Thursday): Cairo Water Week, Cairo.

19-22 October (Sunday-Wednesday): Arab African Investment and International Cooperation Summit.

23-25 October (Thursday-Saturday): Stone Africa Expo, Cairo International Conference Center.

October: The third iteration of the Export Smart Exhibition and Conference.

Mid-October: Capmas to publish the findings of its 2023-2024 income and expenditure survey.

NOVEMBER

16-19 November: Cairo ICT 2025, Egypt International Exhibition Center

20 November (Thursday): Monetary Policy Committee meeting.

November: Egypt to join the EU’s Horizon Europe research and innovation program.

DECEMBER

1-4 December: Egypt Defence Expo (EDEX), Egypt International Exhibition Center.

25 December: (Thursday): Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

3Q 2025: Nasr Automotive begins locally manufacturing passenger cars.

3Q 2025: Polaris Parks to finalize contracts for two new industrial zones in the new capital and Sadat City.

Mid-2025: The Administrative Capital for Urban Developments to roll out the second phase of offering industrial plots to investors

2H 2025: Potential visit by Chinese President Xi Jinping to Egypt

4Q 2025: The beginning of construction works on China’s State Grid two solar projects.

4Q 2025: GB Auto starts assembling one of China’s Great Wall Motor models in 4Q 2025.

4Q 2025-1Q 2026: Kasrawy Group to launch first Avatr EV models in Egypt.

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

2025: Release of the government’s Startup Charter document.

Before 2025-end: The government will launch two ro-ro shipping lines with Saudi Arabia and Turkey.

2026

Early 2026: Passenger operations on the New Administrative Capital–Nasr City monorail scheduled to begin.

1Q 2026: Trial operations for the Ain Sokhna–Sixth of October section of Egypt’s first high-speed rail line scheduled to begin.

1 January: European Union’s Carbon Border Adjustment Mechanism (CBAM) to fully come into effect.

15 March 2026: IMF to hold its seventh review of Egypt’s USD 8 bn EFF arrangement.

May 2026: End of extension for developers on 15% interest rates for land installment payments

15 September 2026: IMF to hold its eighth review of Egypt’s USD 8 bn EFF arrangement.

2H 2026: Operations at Deli Glass Co’s new USD 70 mn glassware factory kick off.

2027

20 January-7 February: Egypt to host the African Games.

April 2027: Tenth of Ramadan dry port and logistics hub to begin operations.

EVENTS WITH NO SET DATE

2027: Egypt to host EBRD’s annual meetings for 2027.

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

September 2028: First unit of the Dabaa nuclear power plant begins operations.

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